First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF - Acc

Issuer: First Trust

Asset Class: Equity

TER: 63bps

Trading Currency: GBX

Pays Income: False

Listing Date: 22 Apr 2022

Ticker: FGRD

ISIN: IE000J80JTL1

This investment offers focused exposure to the global modernization of the electrical grid, a critical component of the worldwide transition to a low-carbon economy. It targets companies that are integral to building the 'smart grid' of the future. The portfolio includes firms specializing in grid infrastructure, such as advanced transmission and distribution networks; enabling technologies like smart meters and grid automation software; and energy storage solutions, which are vital for integrating intermittent renewable sources like wind and solar power. By investing in the foundational elements that support the clean energy revolution, this strategy aims to capture the growth driven by the essential and large-scale upgrades required for our energy systems to become more efficient, resilient, and sustainable.

The investment thesis is underpinned by powerful, long-term secular trends. Governments and corporations globally are committing to ambitious decarbonization targets, which cannot be achieved without a fundamental overhaul of existing power grids. This has unleashed significant public and private investment, supported by landmark policies such as the Inflation Reduction Act in the U.S. and the Green Deal in Europe. As electrification expands to transportation and heating, and renewable energy generation increases, the demand for smart grid technologies and infrastructure is set to accelerate. This creates a compelling, multi-decade growth opportunity for the companies involved in this transformation, positioning them to benefit from sustained capital expenditure in the utilities and energy technology sectors. This financial product provides a vehicle to participate in this structural growth story.